accredited investor qualifications
In compliance with the SEC (Securities and Exchange Commission) rule 506c, FBR Investment Fund only accepts investments from accredited investors. To ensure compliance, we offer a convenient and secure verification process through our website using a trusted third-party service called “Verify Investor.” This complimentary service is conveniently provided for our FBR Investment Fund investors.
Determining if you qualify as an accredited investor is straightforward.
You must meet at least one of the following four requirements:
1. High Income Individual:
Individuals who have earned a gross income of $200,000 or more per year for the past two years and have a reasonable expectation of maintaining the same income level.
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2. High Income Couple:
Individuals who, in combination with their spouse, have achieved a combined gross income of $300,000 or more per year for the past two years and have a reasonable expectation of maintaining the same income level.
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3. High Net Worth Individual:
Individuals who possess a net worth of $1 million or more, excluding the value of their primary residence.
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4. Qualified Entity:
Entities with assets totaling at least $5 million or businesses where all equity owners are accredited investors.
These qualifications are designed to ensure that our investors meet the necessary financial thresholds for participation in our investment opportunities. If you meet any of the above requirements, we encourage you to proceed with the verification process to gain access to our exclusive investment opportunities.
Please note that these requirements are in place to comply with regulatory guidelines and to safeguard the interests of all our investors. If you have any questions or need assistance with the verification process, our team is available to provide support and guidance.
At FBR Investment Fund Investment, we are committed to maintaining a secure and compliant investment environment for our valued accredited investors.
providing proof of being an accredited investor
To demonstrate that you are an accredited investor, it is essential to have the necessary documentation readily available before starting the application process. The specific requirements vary depending on whether you are investing as an individual or retirement account, or as an entity or trust. Here’s a breakdown of the documentation needed for each:
For individuals and retirement accounts:
• Proof of income for the past two years can be supported by official tax records such as US tax returns, W-2 forms, K-1 statements, 1099 forms, or other relevant government documents.
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• Documentation of assets that establish a net worth of at least $1,000,000 (excluding your primary residence). Examples of acceptable documentation may include a property deed, bank statements, a letter from a financial institution, or a vehicle title demonstrating ownership. Additionally, investors are required to provide third-party liability evidence by submitting a copy of their credit report (not older than 90 days). You can obtain a free credit report from any of the credit reporting bureaus via annualcreditreport.com.
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• A verification letter dated within the last 90 days from a third-party licensed attorney, a certified public accountant (CPA), an SEC-registered investment advisor, or a registered broker-dealer certifying your accredited investor status.
For entities or trusts:
• If the entity or trust has total assets exceeding $5,000,000, it typically requires providing a bank statement, a formal valuation from a valuation professional, or an appraisal of real estate held by the entity.
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• If the entity or trust does not meet the minimum assets test, it may still qualify as an accredited investor if all equity owners are accredited investors. In such cases, each entity owner must provide one of the following:
o Proof of income for the past two years supported by official tax records such as US tax returns, W-2 forms, K-1 statements, 1099 forms, or other relevant government documents.
o Documentation of assets that establish a net worth of at least $1,000,000 (excluding the primary residence). Examples of acceptable documentation may include a property deed, bank statements, a letter from a financial institution, or a vehicle title demonstrating ownership.
o A verification letter dated within the last 90 days from a third-party licensed attorney, a CPA, an SEC-registered investment advisor, or a registered broker-dealer certifying the accredited investor status.
ACCREDITED INVESTOR VERIFICATION
Important note: An accredited investor verification is valid for up to 90 days.
To maintain the verification status without reapplying, you must make your first investment and complete the wire transfer within this time frame. Once you have made your initial investment, your verification remains valid with FBR Investment Fund.
To ensure a smooth process, we recommend starting the application only once you are ready to invest. If you are prepared to begin, click the button below to get started.